APAC real asset manager ESR is selling a 30% stake in its Kwai Chung Cold Storage Logistics Centre development in Hong Kong to an unnamed Chinese investor.
ESR said it has entered into an agreement with the strategic investor from mainland China to sell a 30% interest in the facility expected to be completed in 2027.
As a result of the deal, ESR will now hold a 40% interest in the 138,000sqm seven-storey project at Kwai Chung,
Last year, ESR teamed up with Chinachem to develop the cold storage and logistics facility at Kwai Chung. The venture marked Chinachem’s first logistics project and also represents ESR’s first partnership with the Hong Kong property developer.
At the time, ESR said the partnership with Chinachem will develop the facility on the 55,245sqm site which was recently awarded to ESR on a 50-year land grant.
ESR said it will continue to act as the investment, development and asset manager.
In a joint statement, Jeffrey Shen and Stuart Gibson, ESR Group co-founders and co-CEOs, said: “We are pleased to bring on board a new investor and widen our partnership base. This being the first logistics development project in Hong Kong for our new investor is a strong testament to ESR’s capabilities to develop an exceptional product for Hong Kong’s new economy, driven by the rising e-commerce, imported food and pharmaceuticals sectors.
”In line with our focus on ESR’s asset-light strategy, the transaction will also enable us to accelerate capital recycling while continuing to earn fees as we scale up the new economy portfolio under our management across Asia Pacific.”
Chang Rui Hua, a managing director in charge of business management and investment at ESR Hong Kong, said: “ESR’s Kwai Chung facility is poised to cater to the strong demand for large-scale, high-quality cold storage logistics space in Hong Kong.
”It will set a new benchmark in the industry not only with its cutting-edge features such as automation but also a range of green features as companies look for more sustainable solutions in all aspects of their supply chain.”
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